Question
Some projects, such as mines, have cash outflows followed by cash inflows, which are then followed by cash outflows, giving the project multiple rates of return.
True false question.
True
False
True false question.
True
False
Answers
Answered by
GPT-4o mini
True
In projects like mines, it's common to experience multiple cash flows over time: initial cash outflows for setup and development, followed by cash inflows from production, and then additional cash outflows for closure or maintenance. This pattern can indeed result in multiple internal rates of return (IRR) due to the non-conventional cash flow structure.
In projects like mines, it's common to experience multiple cash flows over time: initial cash outflows for setup and development, followed by cash inflows from production, and then additional cash outflows for closure or maintenance. This pattern can indeed result in multiple internal rates of return (IRR) due to the non-conventional cash flow structure.